Published 11 April 2011
The creditors’ meeting of property developer Nigel McKenna has been postponed a week to this Friday, 15 April, giving Mr McKenna just one shot at convincing creditors of the worth of a compromise scheme before he faces bankruptcy the following Tuesday.
Mr McKenna filed a last-minute proposal at the High Court in March, offering his creditors less than 1c:$1 – $1.25 million over 3 years to creditors owed $150 million. However, there was confusion over how much was owed to Allied Farmers Ltd, which took over Hanover Finance Ltd’s loan book in December 2009.
The Fletcher Construction Co Ltd has been trying to bankrupt Mr McKenna for his failure to support a personal guarantee of the payment due from McKenna company Melview Featherston Street Ltd on completion in 2008 of the Holiday Inn hotel in Wellington (now Rydges Wellington).
Fletcher Construction’s lawyer in the case, Graeme Christie, said after the creditors’ meeting was postponed last Friday: “They just unilaterally wrote to us and said some creditors wanted more time, so they postponed it to next Friday.”
Mr McKenna developed a number of apartment projects around Auckland, including the Sebel on the Viaduct Basin and Lighter Quay on the Lighter Basin, got into the hotel business when he started the Quadrant chain and developed the Holiday Inn, and expanded that side of his development business with the Westin in Auckland and the Kawarau Falls Station resort near Queenstown. He was also the initial developer chosen to put together a masterplan for the Flat Bush town centre, but that project has been taken over by Todd Property Group Ltd and other parts of his business are in the hands of receivers & liquidators.
22 March 2011: McKenna gets chance to put insolvency scheme to creditors
21 March 2011: McKenna files last-minute insolvency proposal
21 March 2011: Quick decision on McKenna’s fate expected in morning
5 October 2010: McKenna’s last-minute bankruptcy stall fails
7 December 2008: Eau dear, there’s a spat over the bill for the Holiday Inn
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Attribution: Phone interview, story written by Bob Dey for the Bob Dey Property Report.